You can check their result actually their sales is about the same with previously. The reason why this year profit lower due to expansion. The money all go into indonesia for new opening shop. And this is good for company towards earning. You can check previous report how much they pay in Indonesia market. I STRONGLY BELIEVE the company will make a come back soon.
Previous one city body is gwplastic which at 0.6+ range after take over now above rm1..Gs Realty I think we roughly know how big they are so shall see show time soon...
"vxpoison >>> my comment on bonia... finding support at 0.565. If can remain around this price... will spike soon to challenge 0.635. 18/05/2016 20:32"
FY16 remains challenging Bonia’s 9M16 core net earnings of RM20.8m came below our and consensus expectations (69% and 61% of full-year forecasts respectively). As expected, the gross profit margin contracted by 3.8ppts to 55.3% given the higher discounts and promotions to attract customers and higher cost of imported goods due to the weakened Ringgit. We cut our EPS forecasts by 12-17% by assuming lower revenues, and maintain a SELL with a lower TP of RM0.47.
Operating profit still plunging, down 37% yoy Meanwhile, the group’s 9MFY6/16 operating profit declined 37.1% yoy to RM44.6m pulling down EBIT margin by 4.1%pts to 8.8% (vs. 12.9% in 9MFY6/15). The main earnings drag was the soft showing from its Malaysia operations (commands 80% of 9MFY6/16 PBT) where multiple discounts and promotional campaigns were launched to push sales. We also understand that the group has not passed on the additional costs of GST since last year, which also impacted earnings. Consumers still spooked by higher cost of living We continue to expect margins to come under pressure as the group continues its aggressive promotions and campaigns to drive sales growth. Additionally, we believe that recovery in demand for consumer discretionary products may be limited for now, with consumers opting to spend only on necessary F&B products instead.
it depends very much on the management strategy and cost control measures. look at Padini, they manage to recover from the GST haunting and earnings has picked up remarkably the latest 2 quarters despite having many bundle sales, etc. Bonia just need to come up with a more effective strategy to brace through challenging economy times and poor consumer sentiment
but the Directors keep buyiing since 67 sens zone since Jan-Feb this year. and they still got bullets to average down the cost of shareholding at this point.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Eric Fong
1,196 posts
Posted by Eric Fong > 2016-04-27 18:56 | Report Abuse
You can check their result actually their sales is about the same with previously. The reason why this year profit lower due to expansion. The money all go into indonesia for new opening shop. And this is good for company towards earning. You can check previous report how much they pay in Indonesia market.
I STRONGLY BELIEVE the company will make a come back soon.